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Service Level Agreement Standard

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Service Level Agreement - Standard

This Service Level Agreement (hereinafter referred to as the "SLA" or "Agreement") is entered and shall stand effective on [Date] (hereinafter referred to as the "Effective Date")

By and between

[Sender Company Name] (hereinafter referred to as the "Company") with its principal place of business at [Company Address], and;

[Customer Name] (hereinafter referred to as the "Customer") located at [Customer Address].

The Company and the Customer shall be collectively referred to as "Parties", and individually as "Party".

WHEREAS the Parties have entered into an [Master Agreement] effective as of [Effective Date] (hereinafter referred to as the “Contract”) for the provision of the Services by the Company (as defined therein) (the “Services”) prior to this Agreement.

WHEREAS the Contract states that a service level agreement is a condition precedent to proceed with any extended term of the Contract.

NOW, THEREFORE, in consideration of the mutual promises and covenants in this Agreement, the Parties hereby agree as follows.
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Terms and Conditions

1. Definitions

  1. “Modification” means the upgrade of the existent service or deliverable version which includes new features and enhanced functions.
  1. “Service” means an action that aids an individual or a group of individuals or an organization by meeting the needs through information, action, or technology.
  1. “Deliverable” means a product that contains the necessary features to meet the needs of the target consumer and providing solutions to the problem.
  1. "Purchase Order" means a set of articles/services for the Company to be provided to the Customer and compensated accordingly.
  1. "Malfunction" means the deliverables/services not working as per the expected customer requirements and as claimed by the company.
  1. "Service Credits" means compensatory credit amounts which the Customer can deduct from the amount to be paid to the Company for the services rendered; if it does not fit the Customer's expectations and requirements, mutually agreed by both parties.
  1. Severity level: The severity level is defined by the extent of impact the problem has on the overall performance of the solution.
  1. S1 - Very high severity: Complete failure of critical systems, services, applications, or network. All user base is impacted by the downtime.
  1. S2 - High Severity: The application is not down but there is a serious problem affecting the productivity of multiple users.
  1. S3 - Medium Severity: The application is not down but there is an issue affecting a small number of users.
  1. S4 - Low Severity: Functionality enhancement and/or support for modifications or maintenance of source code, training documentation, or user documentation.

2. Purpose

The purpose of this SLA is to specify the various responsibilities and services that the Company shall provide to the Customer, at specific levels of support, and at an agreed-upon cost.

3. Scope of SLA

This Agreement narrates the standard level of service that shall be provided by the Company within the framework of security, including performance criteria, availability of services, action to be taken in cases of a service failure and response and repair times.

The Company retains the right to change, update, or modify this SLA at any time. Such updates will be informed to the Customer.

4. Services Offered

The Company agrees to provide and perform the following services ("Services") for the Customer in a timely, efficient, and professional manner:
Service Type
Record and closely monitor the problems, queries, and concerns of the Customer.
Provide solutions to the issues mentioned by the Customer.
Maintenance and support of servers.
Analysis of the root causes of problems.
[Add Service Type]
[Add Description]

5. Service Levels and Service Credits

The Company shall at all times during the term of this Agreement provide the Services to meet or exceed the Service Level Performance Measure for each Service Level Performance Criterion, as mentioned below.

The Company agrees that if the level of the Service fails to meet any Service Level Performance Measure, it may have a poor impact on the business of the Customer, and the Company shall grant the Customer to the rights set out in this Agreement below, including the right to any Service Credits (as mentioned below).
Service Levels Performance Criterion
Key Performance Indicator
Service Level Performance Measure
Availability of the Service
The Company shall pay compensation to the Customer of an amount equal to [0.00]% of any Royalties payable by the Customer to the Company
Defect Rates
[Add the KPI, eg: Reliability, Issue Recurrence, etc.]
[specify how will the Company compensate in case it fails to meet the Service Level]
Technical Quality
[Add the KPI]
[specify how will the Company compensate in case it fails to meet the Service Level]
[Add the KPI]
[specify how will the Company compensate in case it fails to meet the Service Level]
[Add your performance criteria]
[Add the KPI]
[specify how will the Company compensate in case it fails to meet the Service Level]

6. Problems, Severity Level and Response Time

Severity Level
Problem Description
Response Time

[Server Down]
[High risk of server downtime]
30 minutes
[End-user impact initiated]
1 hour
[Fixing of bugs and vulnerabilities]
5 minutes
[Issue addressed but potentially impactful in the future]
1 business day
[Inquiry for Information]
2 business days
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7. Company's Responsibilities

  1. The Company shall act as a primary support provider of the Services set forth in this Agreement except when third-party service providers are hired who shall assume appropriate service support responsibilities accordingly.
  1. The Company shall inform the Customer regarding scheduled and unscheduled service outages due to maintenance, troubleshooting, disruptions, or as otherwise necessary.
  1. The Company shall conduct business in a courteous and professional manner with the Customer.
  1. [Add Responsibilities]

8. Customer's Responsibilities

  1. The Customer shall give all the important information and assistance related to service performance that allows the Company to meet the performance standards as defined in this Agreement.
  1. The Customer shall attempt to resolve problems over the phone on the first call.
  1. The Customer shall conduct business in a courteous and professional manner with the Company.
  1. [Add Responsibilities]

9. Exclusions

The parties agree that the Company shall not be liable to the Customer for the following services:
  1. If any failure occurs because of any willful action on a production or test system taken by the Customer.
  1. The Company is not responsible for support or bug fixing of the Customer's Application System.
  1. [Specific services that are not offered, to eliminate room for assumptions from other parties]

10. Maintenance

  1. The Company shall provide the Customer with generally available modifications to the service.
  1. The Company shall inform the Customer from time to time about the latest updates of new services available and also let the customer know the scope of improvement on existing deliverables/services.
  1. If the maintenance request is beyond the binding limitations of this Agreement, the customer shall be charged an additional maintenance fee.

11. Payment

Payment for the services provided under this Agreement shall be accomplished through direct billing to [Customer Name] as per the Purchase Order raised for the services. The specific billing amount for the same shall be stated by the Company and that shall be agreed by the Customer. The Customer shall pay for Products ordered under this Agreement within [Mention Time Period] from the date of invoice.

12. Metrics

The Company shall provide the Customer with a quarterly report of services rendered as per the Agreement. The report will mention the description of service, personnel that completed the task, date, time, and total effort of work. In addition, the Company shall also take feedback from the Customer to address issues outside of the original scope of work.

13. Confidentiality

  1. Both the company and the customer shall mutually consent to safeguard confidential information of both parties which is revealed during the course of the agreement. Each may also keep an external party’s confidential information private as per the party's privacy policy.
  1. Data and security rights shall vary by jurisdiction.
  1. Both parties if compelled to disclose any information for any reason, the concerned party shall take due permission in writing and then proceed accordingly.

14. Warranty

1. The Company warrants that the services being purchased hereunder are done with proper efficiency as per the Company's best knowledge.
2. The Company shall abide by this warranty and fix any issue at an authorized Company service center in the [Mention State].
4. The Company takes responsibility to either repair or exchange any component which fails during the warranty period during the agreement.

15. Indemnification

Both Parties mutually indemnify and hold no blame to the other Party, its respective affiliations, the employees, and permitted descendants and assigns against any loss, claims, damages, penalties, liabilities, expenditure, reasonable legal remuneration of whatsoever kind or amount, which result from the negligence of or breach of this Agreement by the indemnifying party, its respective affiliate or successors and any assign that occurs in connection with this Agreement. This section remains in full force and effect even after the termination of the Agreement.

16. Arbitration

In the event of any dispute arising in and out of this Agreement between the Parties, it shall be resolved by Arbitration. There shall be [Number of Arbitrators] Arbitrators which shall be appointed by [Party Name]. The venue of Arbitration shall be [Venue/Location of Arbitration] and Seat shall be [State]. The Arbitrators' decision shall be final and will be binding on both the Parties.

17. Miscellaneous

  1. Governing Law: The Agreement and all the terms contained herein shall be governed by and construed as per the laws of the state of [State].
  1. Force Majeure: Neither Party shall be liable for any failure in performance of the obligation under this Agreement due to cause beyond that party's reasonable control (including and not limited to any pandemic, fire, strike, act or order of public authority, and other acts of God) during the pendency of such event.
  1. Notices: Any notice required to be given to the Customer shall be delivered by certified mail, personal delivery, or overnight delivery paid for by the Company.
  1. Severability: In the event that any provision in this Agreement is held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality or unenforceability will not affect any other provisions of this Agreement and all other provisions will remain in full force and effect.
  1. Amendments: No modification or waiver of the provisions of this Agreement shall be valid or binding on either Party unless in writing and signed by both Parties.
  1. Inclination: The Parties must acknowledge that this Agreement hereinafter is solely for the benefit of the Parties undersigned and serves no inclination to any Party, nor is intended to confer any rights or remedies in favor of any person, party, or affiliate, other than the Parties duly undersigned and their members.
  1. Entire Agreement: This Agreement and other annexures, therefore, constitute the entire agreement between the Parties concerning the subject matter hereof and thus, supersedes all prior agreements, purchases, understandings, and negotiations, written or phonated, between the Parties.

Acceptance and Signature

The Parties acknowledge that they have read the above Agreement in its entirety, understand all of its terms and conditions, and agree to abide by the terms of this Contract as demonstrated by their signatures as follows:

Assign signer 1
Assign signer 1
Assign signer 1
Assign signer 2
Assign signer 2
Assign signer 2
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